CoinDesk
A bipartisan group of U.S. senators, led by Republican Cynthia Lummis, is pressing Treasury Secretary Scott Bessent to publish explicit procedural guidance for how states can win certification to supervise stablecoin issuers under the GENIUS Act. The letter, also signed by Angela Alsobrooks, Catherine Cortez Masto and Kirsten Gillibrand, argues that Treasury's April proposal laid out principles for assessing whether a state regime is "substantially similar" to the federal framework — but skipped the timeline, application mechanics, and review process states would actually follow to get there.
Why it matters
The Guiding and Establishing National Innovation for U.S. Stablecoins Act leaves room for state-level oversight of stablecoin issuers, provided states can demonstrate their regime meets federal standards. Treasury's April rules are the first attempt to define what "substantially similar" looks like, and the senators say the omission of a certification procedure is already creating confusion among state regulators racing to put their own GENIUS-aligned rules in place. "Absent clear procedural guidance, the certification process could be interpreted or applied in a manner that effectively forecloses future participation," the lawmakers wrote — a warning that, if unaddressed, could concentrate stablecoin oversight in Washington by default rather than by design.
Market impact
The push matters because the U.S. stablecoin market, dominated by Tether and Circle, has been operating in a regulatory grey zone that the GENIUS Act was meant to close. How Treasury writes the state-certification path will shape which issuers route through state charters versus federal ones, and which state regulators — New York, Wyoming, Texas — end up with meaningful supervisory authority over the next generation of dollar-pegged tokens. Investors watching the bill's implementation will read Tuesday's letter as a signal that the rulemaking timeline is being contested, not just the bill itself.
Frequently asked questions
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What is the GENIUS Act?
The Guiding and Establishing National Innovation for U.S. Stablecoins Act is U.S. legislation designed to regulate stablecoin issuers. It leaves room for state-level oversight of issuers, provided state regimes can demonstrate they meet federal standards.
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Why are senators pushing Treasury for state guidance?
Senators led by Cynthia Lummis argue Treasury's April proposal defined the principles for assessing state regimes but omitted the timeline, application mechanics and review process states need to actually get certified — leaving them unable to demonstrate their oversight is on par with federal supervision.
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Who signed the letter to Treasury Secretary Bessent?
The letter was led by Republican Senator Cynthia Lummis, chair of the Senate Banking Committee's crypto subcommittee, and co-signed by fellow Republicans and Democrats including Angela Alsobrooks, Catherine Cortez Masto and Kirsten Gillibrand.
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What could happen if the state-certification process stays unclear?
The senators warn that, absent clear procedural guidance, the certification process could be "interpreted or applied in a manner that effectively forecloses future participation," concentrating stablecoin oversight in Washington by default rather than by design.
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Which stablecoins and state regulators are most affected?
The dominant U.S.-facing stablecoins — Tether's USDT and Circle's USDC — would be the primary issuers affected. State regulators in jurisdictions like New York, Wyoming and Texas are racing to put GENIUS-aligned frameworks in place to retain supervisory authority.
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